Massachusetts Sues Banks For Deceptive Foreclosures

The CEO of one of the five financial firms sued Thursday by Massachusetts for illegal and deceptive foreclosure practices is saying he’s disappointed by the lawsuit.

John Stumpf, of Wells Fargo, told CNBC that his firm had been negotiating with other state attorneys general to reach an agreement on home foreclosures.

But Massachusetts Attorney General Martha Coakley said that it was time to launch the first major legal action against Wells Fargo, Bank of America, JP Morgan Chase, Citigroup and GMAC. She said it’s been more than a year since states began investigating deceptive and sloppy foreclosure practices by banks.

“They’ve had more than a year to show they’ve understood their role, and the need to show their accountability for this economic mess,” Coakley said. “And they’ve failed to do so. That’s why we are filing suit.”